Current through Register Vol. 56, No. 24, December 18, 2024
(a) If the
Commissioner determines that the continued operation of an insurer may be
hazardous to its policyholders, creditors, or the general public in this State,
the Commissioner may, upon such a determination, subject the insurer to
administrative supervision pursuant to
N.J.S.A. 17:51A-1 et seq. and may issue an
order requiring the insurer to take such actions as the Commissioner deems
necessary to abate such determination, including, but not limited to:
1. Reduce the total amount of present and
potential liability for policy benefits by reinsurance;
2. Reduce, suspend or limit the volume of
business being accepted or renewed;
3. Reduce general insurance and commission
expenses by specified methods;
4.
Increase the insurer's capital and surplus;
5. Suspend or limit the declaration and
payment of dividends by an insurer to its stockholders or to its
policyholders;
6. File reports in a
form acceptable to the Commissioner concerning the market value of an insurer's
assets;
7. Limit or withdraw from
certain investments or discontinue certain investment practices to the extent
the Commissioner deems necessary;
8. Document the adequacy of premium rates in
relation to the risks insured;
9.
File, in addition to regular annual statements, interim financial reports on
the form adopted by the NAIC or in such format as prescribed by the
Commissioner;
10. Correct corporate
governance practice deficiencies, and adopt and utilize governance practices
acceptable to the Commissioner;
11.
Provide a business plan to the Commissioner in order to continue to transact
business in this State;
12.
Notwithstanding any other provision of law limiting the frequency or amount of
premium rate adjustments, adjust rates for any non-life insurance product
written by the insurer that the Commissioner considers necessary to improve the
financial condition of the insurer; or
13. Take such other actions as the
Commissioner may deem necessary in a particular case to protect the insurer's
policyholders, creditors, or the general public.
(b) If an insurer is subject to an order
issued by the Commissioner pursuant to (a) above, and the insurer objects to
the actions ordered to be taken as set forth therein, the insurer may request a
hearing before the Department on the Commissioner's determination within 10
days from the date of receipt of such order as follows:
1. A request for a hearing shall be in
writing and shall include:
i. The name,
address, and daytime telephone number of a contact person familiar with the
matter;
ii. A copy of the order
involved;
iii. A statement
requesting the hearing; and
iv. A
concise statement specifying the manner wherein the action(s) ordered by the
Commissioner would not result in improving the condition of the
insurer.
2. Pursuant to
N.J.S.A. 17:51A-1 et seq., all proceedings,
hearings, notices, correspondence, reports, records and other information in
the possession of the Commissioner or the Department relating to the
supervision of the insurer are confidential, except as otherwise provided by
N.J.S.A. 17:51A-1 et seq. Any confidential
proceeding in connection with an order issued pursuant to this rule and
N.J.S.A. 17:51A-1 et seq. shall be held by
the Commissioner or his designee at the Department.
3. The Commissioner may open such proceedings
or hearings or disclose the notices, correspondence, reports, records or
information to a department, agency or instrumentality of this or another state
of the United States, or make such information public, if the Commissioner
determines that the disclosure is necessary or proper for the enforcement of
the laws of this or another state of the United States, is in the best interest
of the public, or in the best interest of the insurer, its insureds or
creditors.
(c) Nothing
contained in this section shall be construed to limit or preclude the
Commissioner from independently requiring an insurer to take specific actions
or limit specified activities pursuant to other provisions of Title 17 or 17B
of the Revised Statutes.
